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03/14/2011

Cable Ops Most Profitable

By: Mike Ferrell, Broadcasting & Cable

Cable operators have been the most profitable media and entertainment companies over the past five years according to a new study by accounting giant Ernst & Young.In its latest report, Spotlight on profitable growth: media & entertainment, Ernst & Young ranked 10 media and entertainment industry sectors on their profitability and growth rate between 2006 and 2010. Cable operators came out on top with the highest average profitability at 38%. They were followed by interactive media (35%); cable networks (31%); satellite television (27%); publishing (20%); conglomerates (19%); and television broadcast (18%). Film and television production, electronic games and music finished the list, all with 11% average profitability."The data illustrates that despite a difficult operating environment, media and entertainment companies continue to show great resiliency," Ernst & Young Global Media and Entertainment Leader John Nendick said in a statement. "Additionally, we believe that as advertising and consumer spending continues to rebound, and digital initiatives blossom, improved growth and profitability lie ahead."Interactive media led the growth companies, with an average growth rate of 15% between 2006 and 2010, followed by electronic games (14%); cable networks (10%); cable operators (10%); satellite TV (9%); film and television production (7%); conglomerates (3%); publishing (-1%); television broadcast (-4%) and music (-5%).